Carte Blanche with Perry

Harare - IPOs by Microfinance Institutions (MFIs) are a relatively a new phenomenon, with the first ‘true’ public listing of an MFI happening in April 2007. Mexico`s Banco Compartamos (let`s share it) became the first Latin American MFI to go public, raising $467mln. Due to the dearth of IPOs on the Zimbabwe Stock Exchange in recent times, following the announcement of the impending GetBucks IPO, a somewhat justifiable sense of euphoria is palpable domestically. But, like prior IPOs of MFIs, a certain tinge of restraint is warranted. Heated debates have happened regarding the ethicality of an MFI profiting from the poor in its pursuit of profits for its shareholders, a direct result of going public. Renowned Economist and founder of Graemeen Bank – the world`s first ever micro-lender –  Muhammad Yunus, has vehemently opposed IPOs by MFIs, arguing that they lead to mission-drift where the institutions will not be able to serve the financially marginalized as focus will square

The US Congress, last week approved the 2016 Appropriations Bill that effectively put paid to the long drawn issue of International Monetary Fund (IMF) quota and governance reforms pushed for since 2010. Back in 2010 when the IMF Executive Board recommended the reforms, then IMF Managing Director, Dominique Strauss-Kahn described the agreement as a “major step forward in the modernization of the IMF and its efforts to adjust its structures to the dynamic and changing realities of the global economy. His successor Christine Lagarde has also echoed similar sentiments following the authorization to carry out the reforms by the US Congress. In a press statement, she said, “ “The United States Congress approval of these reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability. The reforms significantly increase the IMF's core resources, enabling us to respond to crises more effectively, and also improve the IM